A ten-cent euro appreciation pushed Burkinabè cotton farmers from profit into losses

Evidence

In Burkina Faso, while cotton production had increased six-fold between 1994 and 2006, the sharp appreciation of the euro between 2004 and 2007, in a context of falling prices, was catastrophic. With a parity of 1.2 for a euro, the trading companies and farmers of Burkina Faso could have repaid their costs. But since the euro was trading at 1.3, they suffered serious losses. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 303

Categorization

• XREF: Mirrors the CAC 40 figure two paragraphs earlier: a ten-cent change strips margins — but here the victim is subsistence cotton farmers, not large firms. — connects to: The euro–dollar rate doubles the currency risk borne by franc-zone cotton producers.; Euro appreciation against the dollar penalizes franc zone cotton exporters twice — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 642; The same strong euro that hurts France devastates African export competitiveness

Related

• The euro–dollar rate doubles the currency risk borne by franc-zone cotton producers. (similarity 0.92)
• Euro appreciation against the dollar penalizes franc zone cotton exporters twice (similarity 0.88)
• The same strong euro that hurts France devastates African export competitiveness (similarity 0.85)
• Euro appreciation deteriorates franc zone trade balances (similarity 0.83)

Broader Connections

• Euro appreciation against the dollar penalizes franc zone cotton exporters twice #epitomizes (0.75) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 642
• The same strong euro that hurts France devastates African export competitiveness #expands (0.70)